Car Market Insight: May 2026

The UK new car market continued to show positive momentum in May, with the strongest May performance since 2019 and a third consecutive month of growth.

In our latest Automotive Market Insight webinar, Natalie and John reviewed the most recent SMMT car registration data, explored the continued shift in powertrain choice and looked at what RTS Group’s customer sentiment platform, Signal, is telling us about the customer experience.

Missed the webinar? Watch the full recording here.

A growing market with more customer choice

May delivered another positive month for the new car market, with growth supported by increased confidence, strong incentives and a wider range of vehicles available to customers.

Electric and electrified vehicles continue to shape the market. Battery electric vehicles saw year-on-year growth of 34.2%, while plug-in hybrids were up 23.9% and hybrids increased by 1.8%. Petrol was down 7.1% year on year and diesel fell by 2.2%, reinforcing the ongoing shift away from traditional internal combustion engine choices.

Battery electric vehicles also reached a 27.3% market share in May, a significant point in the context of the wider transition to electric. The session also highlighted the level of choice now available, with over 40% of current models available as battery electric vehicles, alongside more than 150 plug-in hybrid models and around 50 hybrid models.

EV confidence is building, but conversations are becoming more complex

One of the strongest themes from the session was the increasing level of choice available to customers. With more battery electric vehicles, plug-in hybrids and hybrids on the market, the customer decision is no longer a simple petrol or diesel comparison.

The discussion also highlighted that average EV range has now moved beyond 300 miles, helping to address one of the key psychological barriers for retail customers. When compared with an average weekly mileage of around 127 to 133 miles, this creates a stronger confidence story for customers considering the move to electric.

This creates a clear opportunity for retailers, but also raises the importance of strong qualification. Sales teams need to understand how customers use their vehicle, what their ownership priorities are and what support they may need to make a confident decision.

The session also highlighted that more than 50% of customers are now physically visiting a dealership to make their first enquiry, rather than starting online or by phone. This makes the in-person experience, from first enquiry through to test drive and handover, even more important.

Private demand remains encouraging

Private market share was another positive point from the May data, with private registrations sitting at 40.3% of the overall market year to date.

This suggests retail customers are still active in the market, supported by attractive offers, wider choice and growing confidence around EV ownership. For retailers, this reinforces the need to make every customer interaction count, particularly when customers are comparing multiple brands and powertrain options.

The session also noted strong activity from newer market entrants. Omoda Jaecoo, for example, was referenced as growing from 91 sites in November to 136 by May, showing the pace at which some challenger brands are expanding their UK presence.

Signal Spotlight: Complaints handling

Moving into Signal, the latest data highlighted a recurring customer sentiment theme: Complaints handling.

Signal analyses public Google and Trustpilot reviews to identify themes in customer feedback across automotive brands and dealer groups. In this session, complaints handling appeared repeatedly as one of the lower-rated areas, particularly around response time, ownership and clarity of process.

The discussion also highlighted a link between customer frustration and vehicle technology, especially infotainment systems. In many cases, customers may not have been shown how to use key features effectively which can lead to frustration after handover.

This reinforces the value of a strong test drive, clear handover and proactive follow-up. Helping customers understand how the car works for them can prevent avoidable issues and support a better ownership experience.

Three practical priorities for retailers

Based on the May data and Signal findings, the session highlighted three priorities for retailers:

1. Qualify customers thoroughly
   Understand the customer’s circumstances, vehicle usage and confidence level before recommending a vehicle or powertrain.
2. Agree a meaningful contact schedule
   Follow-up should feel useful, not generic. Agree when and why contact will happen, so the customer understands the value of ongoing support.
3. Be brilliant at complaints handling
   Have a clear process, act quickly and keep the customer informed. A well-handled complaint can protect trust and strengthen loyalty.

Final thoughts

May’s data points to a market with growing confidence, but also increasing complexity. Customers have more choice than ever, particularly around electrified vehicles and they need clear guidance to make confident decisions.

For retailers, market growth creates an opportunity to strengthen the quality of customer conversations, handover, follow-up and complaint handling.

RTS Group’s monthly Automotive Market Insight webinars help automotive teams keep track of the latest market data, customer sentiment themes and practical actions for dealer performance.

To explore how RTS Group can further support your commercial capability and performance in evolving markets, please get in touch.